NOTE: Several family members were brutally slaughtered recently, so I will take a break from writing. Their deaths erased my affinity for writing about politics or the economy, thus I'll later limit myself to health and brainpower in addition to completing my book on rapidly overcoming racism and bigotry. BTW, the two men who murdered my father are still on the lam; I am offering up to $100,000 for information leading to their arrest and conviction.
The collapse of the U.S. economy: inevitable unless we do this
When I wrote about politics in the first edition of True Emergency Room Stories and Fascinating Health Secrets, it may have seemed out of place to some people, but politics and medicine are inseparable in the United States. I knew that if what I saw in the ER was an accurate microcosm of what happened around the nation, we were wasting vast amounts of money not just in defensive medicine, but also catering to oddballs with bizarre requests and showering more money on people than they had paid into the system. I put 2 and 2 together and projected that the United States was headed for bankruptcy that would end in civil war, which I referred to as “an internecine struggle of heretofore unseen magnitude.” I figured that folks smart enough to understand demographics and economics would also be intelligent enough to know that “internecine struggle of heretofore unseen magnitude” = “civil war,” and civil war = the end of the USA, which will split into separate nations.
That prediction may have once seemed ludicrous, but it doesn't any longer. In a radio interview on Bob Brinker's Moneytalk, Thomas Mackell, Chairman of the Federal Reserve Bank of Richmond, discussed the possibility of intergenerational warfare in the United States. In From Bailout to Bliss, I wrote about how some very prominent people, including high-ranking politicians, are predicting the same thing. Without a miracle or an endless supply of pixie dust, not one economist or politician can plausibly explain how we can repay our national debt and meet our future unfunded obligations: $130 trillion and rapidly growing.
Indiana Governor Mitch Daniels warned the United States faces a “survival-level threat” if its national debt isn't quickly reduced. He said, “Mathematically, the amount of debt we already have and the terrifying rate at which it is accumulating will lead to national ruin. There's no other outcome arithmetically possible.” Daniels said we're already in too deep of a hole to dig our way out with only tax increases or service cuts, so we must encourage private-sector economic growth and reform entitlement programs. In another article, I explained how we could do the latter without hurting anyone. Without my plan, or something comparable (good luck trying to think of one that could do as much with zero pain), many millions of people will suffer from draconian cutbacks, and we'll still go broke.
The size of the United States economy does not make it immune to the laws of economics, so predicting that our nation will collapse now seems like a no-brainer. However, when I made that prediction in 1998, our economy was booming and outwardly healthy, yet I knew that a dangerous cancer was growing. I wanted to warn others of this looming disaster, so I revealed some of the egregious ways our money was being wasted. Little did I know at the time how our government was wasting money in thousands of other ways.
While our economic problems are worse than I thought in '98, we might be able to avert an economic meltdown if we implement outside-the-box ways to stimulate our economy by enhancing innovation and productivity. I mentioned some of those solutions in From Bailout to Bliss and my blog, but most people seem wedded to inside-the-box remedies, such as cutting taxes and regulation. As a proponent of smaller government, I think that less taxes and regulation would help, but expecting them to fix our monumental economic problems is like expecting vitamins to save a terminally ill cancer patient.
I agree with liberals on some issues but not economics, because as a group they favor big government, which will prove to be the kiss of death for the U.S. economy. While I favor giving money to those who need help, I've seen far too many instances of giving money to people who simply want it because they want to sit on their butts while you work to support them (such as ex-welfare cheat Star Parker, author of Pimps, Whores and Welfare Brats: From Welfare Cheat to Conservative Messenger) or they want to spend their money on other things.
For example, I know a family who has received countless freebies from the government (that is, the taxpayers), yet that family has things I couldn't have afforded in my peak earning years as an ER doctor. The government cultivated a “why work when you can steal money from those who do?” attitude, and many people have taken advantage of this munificence. Obama's aunt comes to mind. She seems to think that American taxpayers owe her a living, and she expresses this viewpoint in a brazenly arrogant way that reveals her shocking sense of entitlement.

However, it isn't just liberal Democrats who are burdening us with debt we can't repay, because most Republican Congressmen and Presidents have their own pet ways of digging our economic hole deeper, such as endless wars we can't afford. Thus, I am no fan of Republicans OR Democrats. We have the illusion of choice, not real choice. Democrats and Republicans are really two wings of the same Big Government party, both of which (despite their campaign rhetoric) have been remarkably effective in expanding the power of the federal government while progressively reducing the freedom of American citizens.
“We have a One Big Government Party system. It has a Republican wing that likes war and deficits and assaults on civil liberties and a Democratic wing that likes welfare and taxes and attacks on commercial liberties. It doesn't care about your freedoms because in exercising them you are an obstacle to its power. And it will do anything to stay in power.”
— Judge Andrew Napolitano
“Heroism on command, senseless violence, and all the loathsome nonsense that goes by the name of patriotism—how passionately I hate them!”
— Albert Einstein
“It is lamentable, that to be a good patriot one must become the enemy of the rest of mankind.”
— Voltaire
“No snowflake in an avalanche ever feels responsible.”
— Voltaire
The endless wars we cannot afford
If money grew on trees, spending trillions of dollars fighting terrorists, suspected terrorists, and other enemies around the world would be a good idea. The problem, of course, is that money doesn't grow on trees. We're spending a fortune to fight the estimated 100 al Qaeda fighters in Afghanistan. This war, and others like it, almost certainly makes us more secure now, but at a catastrophic future cost. As I mentioned in From Bailout to Bliss, we are rapidly nearing the day when we must choose between domestic spending and defense spending.
By 2025, every dollar of federal revenue will be spent paying interest on the national debt and entitlements such as Social Security and Medicare. This means that there will be NO money left to pay for defense, highways, air traffic control, education, job training, agriculture, science, energy, community development, international relations, world hunger, the environment, federal law enforcement/courts/prisons, and the many other functions of the federal government, which range from essential to ludicrous and a flagrant waste of money. If other countries are still dumb enough to lend us money, they will demand increasingly high interest rates, which will only compound our problem. Alternatively, if we pay for national defense, many millions of elderly and disabled people will suffer and die from poverty that now seems unimaginable.

Here's an analogy to clarify this predicament: Let's say a single woman living in a bad area sought to increase her security by purchasing a super-duper alarm system and replacing her windows with bullet-proof glass covered with iron bars. That's fine if she could afford it, but what if she were bankrupted by buying more than she could afford? She might go from a reasonably—but not perfectly—secure home to a highly insecure cardboard box or park bench.
This is what will soon happen in the United States. For a marginal improvement in current security, we will end up with no security unless the government uses its iron fist to impoverish us to continue funding our armed forces. Congressman Dennis Kucinich, a Democrat, and Congressman Ron Paul, a Republican, are smart enough to realize that our War on Terror will ultimately slit our own throats and put us in a cardboard box or six feet under.
So what shall we do when 2025 rolls around? Let our enemies kick sand in our faces, or let people starve in the streets?
In From Bailout to Bliss, I mentioned how Marine hero General Smedley Butler said that he eventually realized how he had spent most of his time “being a high class muscle-man for Big Business, for Wall Street and for the Bankers. In short, I was a racketeer, a gangster for capitalism. I suspected I was just part of a racket at the time. Now I am sure of it.”
Quotes by Ron Paul that should give all thinking people reason to think:
“What if the American people learn the truth: that our foreign policy has nothing to do with national security and that it never changes from one administration to the next?”
“What if the American people woke up and understood that the official reasons for going to war are almost always based on lies and promoted by war propaganda in order to serve special interests?”
“What if we as a nation came to realize that the quest for empire eventually destroys all great nations?”
“What if war and preparation for war is a racket serving the special interests?”
Read more related quotes by Ron Paul suggesting that his “crazy” opposition to our wars isn't so crazy after all (note: I used to be an über-war hawk, über-Republican, and über-conservative).
If you study American history with your eyes open, you may see how skilled our leaders are in manipulating public opinion to drum up enthusiastic support for fighting overseas. They're now making the War on Terror seem like the only reasonable thing to do, but there's a smart way to fight terrorism, and then there is the Bush-Obama* way. In the end, they will have spent far too much to get far too little. They will not defeat the enemy, but they will bankrupt us. Like cancer cells remaining after the final chemotherapy treatment, the terrorists will then flourish, with little opposition, and we will regret letting our leaders throw money at a problem when outside-the-box solutions could have done far more for far less. (*However, Obama deserves credit for being the only President in history wise enough to realize that our long-term national defense will be strengthened by scaling back the military we now have—military we can't afford.)
Ellen Brown, JD, author of The Web of Debt, reveals how governments use war to economically advance the business interests of the wealthy corporations that use their money to influence politicians.
President James Madison said:
“The means of defense against foreign danger historically have become the instruments of tyranny at home.”
“If tyranny and oppression come to this land, it will be under the guise of fighting a foreign enemy.”
“Of all the enemies to public liberty war is, perhaps, the most to be dreaded, because it comprises and develops the germ of every other. War is the parent of armies; from these proceed debts and taxes; and armies, and debts, and taxes are the known instruments for bringing the many under the domination of the few. In war, too, the discretionary power of the Executive is extended; its influence in dealing out offices, honors, and emoluments is multiplied; and all the means of seducing the minds, are added to those of subduing the force, of the people. The same malignant aspect in republicanism may be traced in the inequality of fortunes, and the opportunities of fraud, growing out of a state of war, and in the degeneracy of manners and of morals engendered by both. No nation could preserve its freedom in the midst of continual warfare.”
Aleksandr Solzhenitsyn said:
“A state of war only serves as an excuse for domestic tyranny.”
The rich people who pull the strings of their puppet politicians are very astute masters of manipulation who are always stirring the pot, creating situations in which war seems like the right response. They profit from war directly and indirectly, so they want more of it. Directly, by financing wars and profiting from military contracts; indirectly, by using the military to punish governments that won't cooperate with their sordid plans to rule the world by imposing their rules on the rest of us.
Ron Paul explained why the Tea Party can't fight big government at home while supporting it abroad. Even if you disagree with him on philosophical grounds, as a matter of practicality, we simply cannot afford to be the world's policeman any longer.
If you're fond of nature programs, you likely know that big, tough male animals often defend their access to females and food. However, as those males age, they are more likely to be injured or killed while defending their territory. America is now like one of those aging males: we are past our prime and still capable of putting up one heck of a fight, but not without risking an injury that could prematurely lead to our demise.
The United States cannot afford to do everything it has done in the past. Instead of coming to terms with this economic reality, our kooky leaders are spending money like there is no tomorrow. And there may not be, thanks to them.
Senator Judd Gregg (R-NH), the ranking Republican on the Senate Budget Committee and the man who Obama initially selected to be Secretary of Commerce, is talking about possible “bankruptcy for the United States. There's no other way around it. If we maintain the proposals which are in this budget over the 10-year period that this budget covers, this country will go bankrupt. People will not buy our debt; our dollar will become devalued.”
Senator Gregg said that “we’re basically on the path to a banana-republic-type of financial situation in this country” within 10 years. “We're going to undermine fundamentally the quality of life for our children by doing this. […] It will be hard for our kids to buy a car, buy a house, or send their kids to college. The standard of living will drop.”
“Sooner or later, we all sit down to a banquet of consequences.”
— Robert Louis Stevenson
“The truth is incontrovertible, malice may attack it, ignorance may deride it, but in the end; there it is.”
— Winston Churchill
The standard of living is dropping. Of all the horror stories I've heard, the only that rattled me the most was hearing a hardworking man I recently met describe how he went from owning a thriving business with 75 employees to selling off his personal assets because he is facing foreclosure and will soon be homeless. Many small, medium, and large businesses that were once successful are now defunct or teetering on the edge of bankruptcy. Add in the tens of millions of struggling Americans, and you're forced to conclude that either the American people are stupid or our leaders are. I believe it's the latter.
Our leaders have burdened us with myriad laws and regulations that even they don't understand—or often even bother to read. They've given us byzantine tax code that even mystified Albert Einstein, who said, “The hardest thing to understand in the world is the income tax.” In effect, they've put shackles around our ankles and nooses around our necks, and have the gall to feign surprise when we aren't more prosperous living in a nation in which successful people are penalized and demonized by politicians hoping to impress voters who like work the best when you do it for them—such as Star Parker, who once preferred going to the beach while you paid her expenses.
Author Robert Heinlein said, “It is socially unacceptable to be right too early.” When I wrote True Emergency Room Stories in the 1990s, I was right: America was in a heap o' trouble, and welfare was a big part of it. Giving many millions of people things they did not earn—food, clothing, medical care, college educations, utilities, and even homes—was a recipe for disaster, so when the USA was riding high during the Clinton years, I knew we were headed for a crash. How many economists at that time were saying the same thing? One? Yes, and he was Russian. It's not that I am so perceptive as an amateur economist, but that the professional ones were so obtuse.
Just put 2 and 2 together, and see if they add up to something other than big trouble. I knew the housing bubble was bound to burst years before it did when I witnessed home prices rise to the point that I couldn't begin to afford any of the gargantuan homes springing up like weeds in vast subdivisions that seemed to go on forever in fields that were vacant a few years before. I wondered, “Where do all those people get so much money?” The money bubble, the dot-com bubble, or reinvested profits from the real estate bubble. One by one, they burst. Pop, pop, pop, and our economy deflated.
Voters give too much attention to what politicians say, not what they do. What they do is screw Main Street to benefit people who are allergic to work, fat cats on Wall Street, and myriad special interest groups. Cunning politicians are masters at pitting groups of Americans against each other, so we fight one another instead of them.
Most people want basically the same things: a good job, a nice home and car, peace and security, and a bright future for our children. In spite of those similarities, liberals often say they hate conservatives, or vice versa. Politicians often talk about bringing us together, but they're actually very divisive. They depend on that divisiveness to polarize our nation into groups they can manipulate. They could bring us together if they were smart and cared more about us than themselves. Fat chance of that.
I advocate freedom and fiscal responsibility, not reckless spending that is digging the USA grave. Tax-and-spend liberal Democrats—and big government Republicans—have had a heyday killing the goose that laid the golden eggs, but when our goose is cooked, as it almost surely will be, we won't have money to fund wars, social programs, education, and pork barrel spending for frivolous things like The Buffalo Bill Historical Center, the Montana Sheep Institute, the Reindeer Herder's Association, Hawaiian canoe trips, a Vulcan monument, a rice museum, the Polynesian Voyaging Society, and research to see if female co-eds go all the way after drinking beer.
Didn't hear about that research? You can read about it in From Bailout to Bliss. Here's an excerpt that reveals how I mocked Congress for this flagrant waste of money:

If you wish to reuse this image, please contact me first so you can pay the
small licensing fee to the photographer and models, who don't work for free.
I am willing to give away my part (turning their image into a magazine
cover), but I cannot give away their photo, which I paid to use.
Our economy has been kept alive by several bubbles, but they've already popped and are deflating. The Federal Reserve is literally creating money out of thin air in an attempt to buoy our economy, but this government-sanctioned counterfeiting is far more extensive and hence more injurious than criminal counterfeiting. The Federal Reserve is also playing games such as buying our debt, which does as little to enrich us as when a person tries to enrich himself by transferring money from his left pocket to his right pocket. These clear-cut signs of desperation by the Federal Reserve manifest how precarious our economy is. Even Donald Trump spoke of a “death spiral” that may precipitate the economic collapse of the United States.
Republicans are marginally less greedy than Democrats in terms of taxation, yet they are still greedy—and stupid. Both major political parties favor a heavy-handed approach to governing. Rather than looking for innovative ways to provide necessary services and infrastructure at the lowest possible cost, their lock on power is so firmly entrenched that they never perceive a need to think of innovative ways to make government more of a friend and less of a burdensome enemy.
As I explained in From Bailout to Bliss, instead of taxing you, the government could send a check to you every year, and as I explained in my blog, it is even possible to make paying taxes so joyous that one wants to pay even more. However, most people think that medicine must taste bad to be good, so they don't look for outside-the-box ways to improve government, society, and their personal lives. Liked a caged animal that cannot imagine what life is like outside the box it is trapped in, people are born into a system and resign themselves to its many flaws, thinking that's just the way it has to be. No, it doesn't.
An advertising slogan created for Apple Computer in 1997 brilliantly explained how “the round pegs in the square holes, the ones who see things differently” who are “crazy enough to think they can change the world, are the ones who do.”
We pay attention to people with innovative products, but not those with novel ideas for spurring economic growth. Why?
Our leaders in Washington think they can borrow and spend our way out of debt. What do you think?
Related topics
How most wars could be eliminated
Notes:
- Suicide of a Superpower: Will America Survive to 2025?
- National Suicide: How Washington Is Destroying the American Dream from A to Z
- Drift: The Unmooring of American Military Power
- Lies the Government Told You: Myth, Power, and Deception in American History
- Griftopia: A Story of Bankers, Politicians, and the Most Audacious Power Grab in American History
- Griftopia: Bubble Machines, Vampire Squids, and the Long Con That Is Breaking America
- Vultures' Picnic: In Pursuit of Petroleum Pigs, Power Pirates, and High-Finance Carnivores
- Next Great Depression? MIT researchers predict ‘global economic collapse’ by 2030
- Calls to toughen regulation follow JPMorgan loss
Excerpt: “… big banks still do not understand the threats posed by their own speculation.”
Comment: In 2012, they still don't get it! - How a Former Currency Strategist Went from $150K/Year to Serving Lattes at Starbucks
- 1 in 2 new graduates are jobless or underemployed
- An example of something that could have seriously damaged the U.S. economy or even precipitated its collapse: Record $6 Trillion of Fake U.S. Bonds Seized. Don't be sanguine just because we caught that disaster in time; our system is inherently vulnerable.
- Retirement in America Is ‘Endangered’
- The New Poor of Fresno
- Crowd Favorite on American Idol Calls Tent ‘Home’
- Slab City: Living Off the Grid in California's Badlands
- After Foreclosure: A Photographer's Requiem for the American Home
- The Tale of a Lost Mortgage
- Goodbye, Middle Class
- From six figures to $15,000
- One bedroom for a family of five
- Americans: Too broke to go bankrupt
- America's new poor
- Even after bankruptcy, trapped by student debt
- Community cash: In each other we trust and How I buy groceries without cash
Comment: Fed up with Federal Reserve dollars, people are turning to other forms of monetary exchange. This isn't as odd as it may seem when you realize that the Federal Reserve is a private financial institution (also see Is the Federal Reserve System a Governmental or a Privately controlled organization? and A Phone Call To The Fed). This reminds me of something Henry Ford said: “It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.” - America's Most Miserable Cities, 2012
- Americans brace for next foreclosure wave
- 10 Middle-Class Jobs That Will Vanish by 2018
- Stockton could become biggest city to go bankrupt
- Utah Husband Posts Video of Wife Stumped by MPH Math
- NSA Domestic Spying Continues Under Obama (that is, Obama didn't start it; Bush did, thus proving that the political affiliation of Presidents has no bearing on their respect for our Constitutional rights)
- 4 high-tech ways the federal government is spying on private citizens (and wasting our money. It is utterly obvious who the real threats are, so why spy on Main Street folks whose biggest crime is going 15 mph over the speed limit? If they're concerned about protecting the President from threats, why doesn't he stay in the White House instead of
- Judge Andrew Napolitano: Is the CIA already in your kitchen?
- 19 Signs That America Has Become A Crazy Control Freak Nation Where Almost Everything Is Illegal
- The Gibson Guitar raid: Yet another shocking example of how our federal government lacks common sense, using its limited law enforcement resources to hassle a legitimate business while women and children are raped and murdered.
- Zakaria: Incarceration nation Excerpt: “There are now more people under ‘correctional supervision’ in America—more than 6 million—than were in the Gulag Archipelago under Stalin at its height.”
- City of Detroit is paying $65,000 for a 2004 Dodge Intrepid that it doesn't even own
- California facing higher $16 billion shortfall Excerpt: “… much larger than had been predicted just months ago …”
- Why Peace (book by Marc Guttman)
- A report showing that GSA spent a fortune buying presents and exorbitantly overpriced food for its employees.
